THE MONEY MARKET

Otago Witness, Issue 2913, 12 January 1910, Page 26

THE MONEY MARKET

LONDON, • January 8. The Economist states that millions of new capital were raised in 1909, whereof 74§ millions went to British possession?, including £26.814.000 to Canada, £11.380,000 to Australia, and £11.291.500 to South Africa. The Kingdom's borrowings were only £18.681.400, as-compared with £50.051.700 in 1908.' Foreie-n countries' borrowings in 1909 were £88.917.200, as compared with £83,501,700 in 1908.

The December ounrte". which has fust terminated, is a period which alwavs brings with it, substantial demand* unon 'the New Zealand money market. On the one hand i«0 advances against wool and other produce -which so out in the h.iitumn season leave th<nr mark most, heavily on the bank returns for the December Quarter, while on the other hand the imixvrfc and exnort returns, for this peri-d invariablv exhibit a balance- more or substantial, on the Side of import*. This has been the experience, certainlv, for the last 10 years, and for the last tViiyo vears the excess has averaged over £900,000 for the December quarter.

The banking and trade returns for th« nuarte-r just concluded are looked forward to with considerable interest, and we think there is everv reason to that, the results will nrove to b» unusually favourable and satisfactory. W~ expect to see. as compared with the statistics of a year ago. a shrinkage in the value of imports and an increase in exports sufficient to negative the experience of recent vears and bring the two sides to an approximate equality. DOssibly even showing a slight excess of exports over imports. As regards exports, wool and dairy produce have come forward exceptionally Shinments of butter and cheese to December 31 exceed in value those of the correspond inty period of last year by about, £250.000. The quantity of wool brought to auction to the same date nten exceeds tint of last year by some PB.OOO bales. The Proceeds of the'Q products comintr to book unusually parly must h?vc a favourable effect on the financial position. Of course, the .'anua'-v-March ouarter is the important neriod of the year in respect of our export trade, tba proportion of our products eoing forward in that period feeing usually about d 0 per cent., in value of the whole vear. The total value of our exoorts for that period is usually about '£7,000.000, and the current season promises to 'be an exceptions 11 v good one. _ With improving commercial prospects in the world generally, the outlook before t-ha

Dominion for the year upon which we have just entered is most encouraging-.—New Zealand Trade Review.